Personal math question/thought

Question

So I had a thought about retirement, and I was wondering how would everyone in the U.S. be able to have a decent retirement fund set up for them. Not for people who will have $600,000 saved up or rich people but people with problems and from poor to middle class people. So I thought to myself if people from age 21 to 65 would get 55 dollars a day that they can't spend at all till they turn 65, but get 55 a day for 44 years would cost $2 trillion for 365 million people. Need more information to be able to exclude people above 65 and younger than 21 and people who have more than $500,000 to thier name. The U.S. makes $3.3 trillion if they would limit their budget to $1.3 trillion they would be able to support 365 million people for 44 years giving them $55/day. So in 44 years for $55/day would give a person around $880,000 for retirement, now if they use all of it fast then it their fault, but whatever is left from the $880,000 after they die would be returned to the U.S. So they would get some of their money back. The $880,000 would be on a retirement card separate from their main bank account, there would be some rules to the card but you should get the idea. So what would you people think of this thought?

Answer 1

I believe this is your question:

"So I had a thought about retirement, and I was wondering how would everyone in the U.S. be able to have a decent retirement fund set up for them. (for low and middle class)"

Your assumptions and the hypotheses are great and I didn't see any problems in it. However, I believe you are overwhelmed by how big is the total amount of the budget they have for the retirement plans.

First of all, money is flowing. There is no bank or any organizations holding such huge amount of money. They do the planning by investment, purchasing bonds, etc. so that they can make sure they have enough amount of money flowing in the market without broken. This is their main concern.

For example, they started the planning and collected the money from 5 people this year. Then, next year they will have 5 other people and so on until they retire. Let's say now they have got the money collected from these people, they will invest the money safely into some organizations and earn the interests. Then, until they retire, they will have the interests to pay them back (and that is why the rules are there to securely ensure the money is flowing without broken, such as "you are not allowed to withdraw a certain amount of money unless it is an emergency")

I feel like I may not describe it clear enough, but my main point is "money is flowing". If you have more questions, feel free to ask. Thanks.